Jack Nelson's Problem
As a new member of the board of directors for a local bank, Jack Nelson was being introduced to all the employees in the home office. When he was introduced to Ruth Johnson, he was curious about her work and asked her what the machine she was using did. Johnson replied that she really did not know what the machine was called or what it did. She explained that she had only been working there for 2 months. However, she did know precisely how to operate the machine. According to her supervisor, she was an excellent employee.
At one of the branch offices, the supervisor in charge spoke to Nelson confidentially, telling him that "something was wrong," but she didn't know what. For one thing, she explained, employee turnover was too high, and no sooner had one employee been up on the job than another one resigned. With customers to see and loans to be made, she continued, she had little time to work with the new employees as they came and went.
All branch supervisors hired their own employees without communication with the home office or other branches. When an opening developed, the supervisor tried to find a suitable employee to replace the worker who had quit.
After touring the 22 branches and finding similar problems in many of them, Nelson wondered what the home office should do or what action he should take. The banking firm generally was regarded as being a well-run institution that had grown from 27 to 191 employees during the past 8 years. The more he thought about the matter, the more puzzled Nelson became. He couldn't quite put his finger on the problem, and he didn't know whether to report his findings to the president.
Questions:
What do you think is causing some of the problems in the bank's home office and branches?
Since employee turnover is high, there definitely has to be a problem in the employees' dissatisfaction with their work. The reasons for this dissatisfaction can range from a low salary to a bad work environment. Furthermore, In one of the branch offices, the supervisor stated that "with customers to see and loans to be made, she had little time to work with the new employees as they came and went." This means that training is inadequate, and the employees are less equipped with the knowledge and expertise needed to be successful, which can lead to poor performance. Since the employees seem to have the skills needed (Johnson precisely knew how to operate the machine, but did not know the name of machine), the problem here comes from the administration's inability to help train the employees - not so much the employee's lack of human capital.
Do you think setting up an HR unit in the main office would help?
Setting up an HR unit in the main office would definitely help. First of all, it can create a company-wide set of standards for employees that would fulfill the needs of the firm. In the passage, it was stated that employees are hired without communication with the home office or other branches. This means that the lacks a universal definition of what is required from an employee - this disorganization is detrimental to the company as a whole. With an HR unit standardizing the job description and the qualifications needed from an employee, it could find better candidates, thus lowering the turnover rate. The passage also states that supervisors did not have time to work with new employees, and they mainly focused on replacing workers who quit. Having the HR unit could also help retain the employees, and it would work to be that support system that would give the employees the attention they need.
What specific functions should an HR unit carry out? What HR functions would then be carried out by supervisors and other line managers? What role should the internet play in the new HR organization?
The HR unit could be in charge of recruiting and lead the initial screening process. It could screen through the resumes and even phone interviews. By upholding a standardized set of required qualifications, it could weed out the employees that would not be a good fit for the company. The candidates that make the first cut would then be given to the supervisors and line managers to choose from through a second-round interview. This helps the supervisors because they seem to be very busy (judging from the passage), and it would be more time-efficient with a smaller pool of candidates to choose from. Another specific function the HR unit can carry out is a well-organized training procedure or orientation, that works to inform the newly hired employees of company knowledge and insight of the company from a bigger picture. After the training, lines managers can then fill the employees in on their specific roles. Here, the training serves to set a strong foundation for the needed expertise.
In terms of the role of the internet, it can be that link that connects the different branches and universalizes employee standards. This includes web pages on what is expected of an employee such as moral conduct, company policies, and even overall knowledge of the company. The internet also can be used as an outlet for training - online streaming or even teleconferencing would helpful ways to serve as a medium for training. The internet can finally be used to find prospective candidates with the emergence of social media, and HR can use it to gain maximum exposure to good prospects.
